Terna S.p.A., Italy's national electricity grid operator, has closed out one leadership chapter and opened another, with outgoing chairman Igor De Biasio handing over the reins after overseeing what the company calls an "unprecedented" period of growth—one that positions the firm as a critical engine for Italy's energy independence and decarbonization ambitions.
Why This Matters:
• New leadership appointed: Stefano Cuzzilla is now chairman, with Pasqualino Monti as CEO, effective May 12, 2026.
• Record investment cycle: Terna deployed over €3.5B in 2025 alone, up 30.6% year-on-year, and targets €4.2B for 2026.
• Revenue growth: Full-year 2025 revenue hit €4.03B, with projections for €4.41B in 2026.
• Workforce expansion: The company now employs 7,117 people across Italy and international operations, up nearly 700 from 2024.
Leadership Transition at a Pivotal Moment
De Biasio's farewell came during the shareholder assembly on May 12, where he reflected on a tenure marked by geopolitical turbulence and energy sector upheaval. "It has been an honor to serve as chairman of a company so central to the country during a complicated geopolitical moment," he said, calling Terna a "model for many in Europe" and expressing confidence that the firm will continue to grow under new stewardship.
Stefano Cuzzilla, the incoming chairman, inherits an operation that has rapidly scaled its infrastructure footprint and financial performance. Pasqualino Monti steps in as managing director and CEO, tasked with executing a €17.7B industrial plan spanning 2024 to 2028, with €16.6B earmarked specifically for grid development and modernization.
De Biasio praised the 7,000-strong workforce dispersed across Italy and abroad as the backbone of Terna's success, emphasizing that the company is "capable of efficiently and punctually addressing the complex challenges of the system." His parting message was unambiguous: "This is a company that will always be in my heart. I will cheer for Terna from here on out."
Financial Momentum and Expanding Operations
Terna's 2025 results underscored a company in robust expansion mode. Revenue climbed to €4.03B, propelled by growth in both Regulated Activities (linked to the expanding Regulated Asset Base, the guaranteed revenue pool for grid operators) and Non-Regulated Activities, which contributed over €750M, particularly through the Energy Services division.
EBITDA (earnings before interest, taxes, depreciation, and amortization) reached €2.75B, a 7.2% increase from 2024, while net profit rose 4.7% to €1.11B. The company distributed an ordinary dividend of 39.62 cents per share, consistent with its shareholder payout policy.
The first quarter of 2026 continued this trajectory despite volatile energy markets and geopolitical friction. Revenue for Q1 2026 came in at €988.7M, up 9.6% year-on-year, with EBITDA at €697.6M and net profit at €276.5M. Notably, net financial debt declined to €12.17B from €13B at year-end 2025, signaling improved cash flow management even as capital expenditures surged.
Terna deployed €511.4M in capital investments during the first quarter alone, with ten new grid interventions authorized, valued at roughly €167M. These include strategic works in Campania, Lombardy, Friuli Venezia Giulia, Basilicata, and a new underground cable link between Dobbiaco and Sesto in Alto Adige.
Strategic Infrastructure: Building the Backbone of Italy's Energy Future
Terna's infrastructure agenda is the operational heart of Italy's drive toward 63% renewable electricity consumption by 2030, as mandated by the National Integrated Energy and Climate Plan (PNIEC)—Italy's roadmap for reducing emissions while meeting EU climate targets. The company's 2025-2034 Development Plan commits over €23B to grid reinforcement, renewable integration, and interconnection projects.
Flagship Projects in Motion
The Tyrrhenian Link, a submarine high-voltage direct current (HVDC) cable connecting Sicily, Sardinia, and Campania, hit a milestone in January 2026 when Terna completed the first cable for the West Branch at a world-record depth of 2,150 meters. In April, the second pole of the East Branch (Campania-Sicily) was also finished, bringing the project closer to its expected completion by 2030.
The Adriatic Link will tie together Abruzzo and Marche, while the Sa.Co.I.3 project connects Sardinia, Corsica, and Tuscany. The Elmed interconnector—a submarine line linking Italy and Tunisia—received authorization in both countries in 2024 and is advancing as a key pillar of Mediterranean energy security.
Terna is also upgrading grid capacity in the north to support the 2026 Milano-Cortina Winter Olympics, with €300M invested in 130 km of underground "invisible" power lines designed to boost resilience against extreme weather events. For residents in Lombardy and Veneto, this translates to more reliable power during peak demand periods and better protection against outages during winter storms—improvements that will remain long after the games conclude.
In March 2026, the company approved a 509 MW / 3 GWh battery storage project in Brindisi, part of a broader push to balance intermittent renewable generation and stabilize grid frequency. For southern Italy residents, this means enhanced grid stability, reducing the risk of localized blackouts that can occur when solar and wind farms suddenly change output due to cloud cover or wind shifts.
What This Means for Your Monthly Bills and Local Grid Reliability
For households and businesses across Italy, Terna's infrastructure rollout translates into tangible benefits. Enhanced grid reliability reduces the risk of blackouts—particularly in regions that have experienced frequent outages, such as parts of Campania, Calabria, and the Adriatic coast. The accelerated integration of solar and wind power should, over time, help stabilize electricity prices by reducing dependency on imported fossil fuels and expensive last-minute energy purchases during peak demand.
However, residents should understand the timing: these infrastructure costs are partially reflected in grid access fees that appear on electricity bills. According to Terna's regulatory model, necessary grid upgrades are recovered through the Regulated Asset Base (RAB)—essentially a guaranteed revenue system where grid operators recoup approved infrastructure investments plus a fair return. While these costs are ultimately passed to consumers, the long-term benefit is a more efficient, resilient grid that prevents costly emergency interventions and supply disruptions. Terna typically recovers major infrastructure investments over 15-20 years, so bill impacts are gradual rather than sudden.
The company's Hypergrid initiative, leveraging HVDC technology (high-voltage direct current cables that lose less energy over long distances), is designed to increase transport capacity between market zones and facilitate the dispatch priority legally guaranteed to renewable energy sources. This is critical as Italy aims to add over 65 GW of solar and wind capacity by 2030, up from 2023 levels. In practical terms, better interconnections mean the abundant solar power generated in southern Italy can reach demand centers in the north more efficiently, reducing local bottlenecks and preventing price spikes in specific regions.
Aligning with European Decarbonization Goals
Terna's strategic roadmap is tightly aligned with the EU Green Deal and the "Fit for 55" package, which targets a 55% reduction in CO2 emissions by 2030 relative to 1990 levels. The company has committed to Net Zero by 2050 and a 30% cut in direct emissions versus 2019 baselines.
Beyond national borders, Terna is reinforcing Italy's role as an energy hub in the Mediterranean. The Greece-Italy interconnection (Gr. Ita. 2) and the Italy-Austria link integrate the Italian grid into the broader European system, enhancing supply security and enabling cross-border electricity trading. Italy's geographic position—bridging Europe, North Africa, and the Balkans—makes these interconnections strategically valuable not only for domestic energy security but also for European market integration.
Terna is deploying digitalization, artificial intelligence, and machine learning for grid optimization through the GAUDI platform (Grid Aggregation for Unit Dispatch Initiative), which aggregates real-time data on every power generation asset in Italy, including solar panels and wind farms. This sophisticated system enables forecasting and prevents grid instability—for residents, it means fewer unexpected outages and more reliable power delivery, especially as renewable energy sources become more prevalent.
Outlook: A Company Built for the Long Haul
As Cuzzilla and Monti assume control, they inherit a company firing on multiple cylinders. The €4.41B revenue target for 2026 is underpinned by a visible project pipeline, a disciplined capital allocation framework, and a regulatory environment that rewards grid investment.
Terna's focus on low-risk infrastructure investments in the Mediterranean basin, combined with its track record of on-time, on-budget project delivery, suggests the firm is well-positioned to navigate macroeconomic headwinds, including interest rate volatility and permitting delays.
For De Biasio, the handover marks the end of a chapter during which Terna evolved from a conventional grid operator into a pivotal actor in Italy's energy sovereignty strategy. For the new leadership team, the challenge is clear: keep the momentum going, deliver on the €23B investment commitment, and ensure that Italy's electricity infrastructure can handle the demands of a decarbonized economy.
In De Biasio's words, Terna is "an excellence for the country." The coming years will test whether that excellence can scale to meet one of the most ambitious energy transitions in Europe.
